Bitcoin trades in ascending channel, is the digital gold poised for New Highs?
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As of May 5, 2025, Bitcoin is trading at $96,266 trading near its all time highs. Indeed, the world’s first decentralized digital currency has evolved from a niche experiment into cornerstone of modern finance.
Bitcoin has a limit of 21 million coins. This makes it a good choice to protect against inflation and currency loss. It’s insurance schedule is fixed and governed by its algorithm. Every four years, the block reward for mining the digital currency is cut in half, known as ‘halving.’ As inflation worries shake global markets, the asset known as “digital gold” is appealing. Its limited supply and decentralized nature make it a good choice for keeping wealth safe.
Firms such as Fidelity, Blackrock and ARK Invest have launched Bitcoin ETF’s by the SEC, fundamentally changing the accessibility of the digital currency.
- Companies like Square, Tesla, and Microstrategy have invested some of their treasury reserves in Bitcoin.
- This is an important point to consider.
Macroeconomic Shifts
Due to global economic uncertainties from changing tariffs by the Trump administration, several trends support a positive outlook.
Emerging markets are looking for alternatives to the U.S. dollar for trade. Bitcoin’s potential is getting more attention. Nations such as El Salvador and the Central African Republic have embraced Bitcoin as official currency.
Ongoing trade concerns between China and the U.S are also driving capital into non-sovereign assets. The digital currency censorship-resistant makes it compelling for individuals and institutions seeking to safeguard capital outside of traditional assets.
Bitcoin Daily Chart
Looking at the weekly chart of Bitcoin, the digital currency is in an upward channel. The MACD is also above the 0 line. These two signals combined favor bulls for the medium term.
Key levels to watch will be $98,000 (psychological) resistance followed by $100,000 which is the all time high potential. To the contrary, a dip below $89,000 may lead to short-term selling pressure.
Reputable sources have issued aggressive targets. ARK Invest predicts a price of $200,000 by 2026. Bloomberg Intelligence suggests a key level of $100,000. They base this on the performance after halvings in 2012, 2016, and 2020.
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